Acwa 17th Annual Report

Aquaculture Council of Western Australia Inc

17th Annual Report 2004/05

17th ACWA Annual Report 2004-2005

ACWA Board of Directors Director Mr Steve Parsons Appointed Oct 2004

Experience and Special Responsibilities Operations Manager and joint owner of Great Southern Marine Hatcheries Pty Ltd for the past 7 years. Previously worked in the commercial diving industry for 15 years and has also experienced time with the both pearling and tuna farming industries. Steve is currently a member of WAAAA (Western Australian Abalone Aquaculture Association) and serves as the WA representative on the FRDC (Fisheries Research & Development Commission) Abalone Sub-Committee.

Vice Chair

Mr. Rick Scoones Appointed Oct 2003

Has an MSc in Zoology and about 20 years of experience in the aquaculture and fishing industries. He is an independent aquaculture consultant with specialties in research, environmental issues and administration of aquaculture, and has expertise in pearl oysters, abalone, scallops, marron and ornamental fish. He has held positions on the ACWA Board since its inception in 1987, including five years as Chairman from 1995 to 2000.

Director

Mr. Glenn Dibbin Appointed Oct 2004

Has extensive experience in Mussels Aquaculture in Australia over the past 21 years. He is founding partner in Blue Lagoon mussels, Western Australia’s leading mussel producer. Serves as Chair of Western Australia Mussel Producers Association. Previously worked in Western Australia in the Scallop, Crayfish And Prawn Commercial Fishing Industry.

Director

Mr. Dan Sampey Appointed Oct 2004

Graduated majoring in Geology and Chemistry from University of WA. Worked as an exploration Geologist /Geochemist. For 15 years owned and ran a geochemical laboratory, exploration contracting service and Consultancy in the mining industry (up to 300 employees). Between 1970-75 Lectured at WAIT (precursor of Curtin Uni) in Applied Geochemistry. Initiated and help guide the discovery and delineation of the Esperance lignite deposit. Director of several public mining companies and subsidiaries. In 1979 started experiments on growing marron. Since 1997 Secretary of the Marron Growers Association. of WA

Director

Mr Murray Konarik Appointed Oct 2003

General Manager of the MG Kailis Group Seafood Division, working across all aspects of the business from catching/resource management to the sale of a diverse range of seafood product to the international and domestic markets. Prior to joining the Group worked as a Chartered Accountant in public practice for eight years.

Director

Dr. Bruce Phillips Appointed Oct 2004

Currently an Adjunct Professor with the Muresk Institute, of Curtin University of Technology in Western Australia. From 1992-1996 was the Chief Scientist with AFMA and was involved in developing a research program for all Commonwealth managed fisheries, including trawl fisheries, finfish, sharks, tuna and prawns. Prior to this he spent 28 years as s scientist with the CSIRO.

Director

Ms Bronwyn Harries Appointed Oct 2004 – 1 year term.

Has been associated with the commercial fishing and aquaculture industries for in excess of 25 years. Managing Director of Cape Seafarms Pty Ltd which is to establish a commercial prawn farm operation at Heron Point, Exmouth Gulf. Bronwyn has been a member of ACWA almost since inception, has been an active board member for many years and Chair for four years.

Director

Mr McLinden Appointed 2003

Executive Director of Southseas Abalone Limited and SAM Abalone Pty Ltd – an operating abalone farm in Port Lincoln S.A.; executive director of Two Rocks Abalone Pty Ltd – a company undertaking a significant research project. Director of the Australian Abalone Growers Association Inc and

Chair

Shane Oct

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17th ACWA Annual Report 2004-2005

Director of WA Abalone Aquaculture Association. Diploma of Company Directorship. Director

Mr Greg Jenkins Appointed Oct 2004

B. Engineering (UWA);

Greg Jenkins has worked in the aquaculture industry in Australia since 1981. During this time he has worked on pilot farms for freshwater prawns in remote areas of Far North Queensland and the Kimberley, WA; as the company biologist for a large wild-capture prawn company in Shark Bay; and as a Research Biologist and Hatchery Manager with a private R & D company in Western Australia investigating the aquaculture potential of marine finfish. Greg has been employed at the WA Maritime Training Centre since 1991 and as Manager of Aquaculture Research and Development since 1994 has led the development of the Aquaculture Development Unit's facilities and programs. Greg is Chair of the WA Sustainable Development of Marine Fishfarming Forum; Vice-Chair of the WA Fish Foundation; Secretary/Treasurer of the WA Marine Fish-farming Association; a Board Member of the WA Fisheries Research Advisory Board and the Aquaculture Council of WA and a member of the National Steering Committee for Inland Saline Aquaculture.

Executive Officer

Mr Dan Machin

Executive Officer of ACWA since Feb 2004. Has 14 years experience in aquaculture industry development. Over this time he has held both senior and middle management positions in aquaculture businesses (Ireland & Greece) and in government, and has provided him with a strong technical knowledge. Dan has BSc. (zoology and botany); Diploma in Business, MSc. in Aquaculture.

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17th ACWA Annual Report 2004-2005

Table of Contents

Quick reference table of ACWA activities 2004-2005 .............................................................................4 Chairman’s Report ................................................................................................................................13 Directors Report....................................................................................................................................16 ACWA’S Business Programs................................................................................................................17 Aquaculture for Profit ........................................................................................................................17 Aquaculture for People .....................................................................................................................21 Aquaculture for Tomorrow.................................................................................................................22 Corporate Services ...........................................................................................................................22 Appendix 1: ACWA Financial Report ....................................................................................................25 Appendix 2: Summary of ACWA’s Key Submissions & Media................ Error! Bookmark not defined.

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17th ACWA Annual Report 2004-2005

Quick reference table of ACWA activities 2004-2005 Aquaculture for People Project Member & Communication

Strategy Industry

Status

Maintain an up to date website

Achieved ACWA maintained an updated website lodging 12 new pages under three new sections.

Undertake Website Redevelopment to improve efficiency and effectiveness of industry consultation and communication.

In progress Completed Functional Specifications and tenders ($35k to $85k). The Minister agreed to fund this program for $20k in Nov 2004. The $20k was not adequate to complete the job, ACWA developed a staging plan for the website’s development, also interstate government partnerships for the project and other commercial arrangements that will see stage 1 operational in 6 months The funding was not made available until end of January 2005. ACWA went out for new round of tenders. In March 2005 ACWA contracted the winning tender.

Member & Communication Member & Communication

Industry

Schedule regular deputations to the Minister

Industry

Attend the Aquaculture Development Council (ADC) meetings

Member & Communication

Industry

Hold a minimum of 10 Board meeting per annum and one AGM,

Four deputations with the Minister. Attended all ADC meetings for 2004/05. ACWA provided an industry issue paper for each meeting. Held 10 board meetings AGM held on 27 October 2004

Member & Communication

Industry

Arrange and regular meetings with DoF to progress aquaculture industry management and compliance issues

Ongoing Commenced in January 2005, seven (7) meetings held.

Member & Communication

Industry

Publish 4 editions of ACWA news

Develop a draft Memorandum of Understanding (MOU) with the Department of Fisheries October 2004 Published. Ceasing publication as members wanted monthly updates. In additional, ACWA current format was making a loss.

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17th ACWA Annual Report 2004-2005

Project Member & Communication

Strategy Industry

Human Development

Publish ACWA digest bimonthly newsletter for members to facilitate timely two-way communication between industry and the ACWA board. Develop and Implement Industry Leadership Training Program

Status On going 4 Editions published.

In progress. Applied for and awarded a Department of local Government and Regional Development “Building and empowering sustainable communities fund” Attended all meetings of the Challenger TAFE Comanagement Training stakeholder Working Group. Sought funding from the Minister to facilitate business leaders attendance. Negotiated the training program with leadership training providers. Liaised with other agri-business sectors associations to co-host the leadership training with to build intersector social capital. Developed industry.

EOI

process

for

To improve the benefits ACWA is aligning this project to Farmbis and the leadership and Environmental Management System Seafood Industry Competency Standards, to enable course to be accredited by Registered training Organisation and be used as part gaining qualifications by participants. Also ACWA is looking for synergies with the Comanagement training package being developed in Western Australia, as part of the building industry’s capacity Integrated Fisheries Management program.

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17th ACWA Annual Report 2004-2005

Project Industry Promotion

Strategy Prepare a paper & presentation for ABARE Outlook 2004.

Status Achieved Prepared presentation on the Marron Industry, the paper was co-authored with Dr Greg Maguire.

Industry Promotion

Secure World Aquaculture 2012 Bid

Ongoing. ACWA meet with WAS, NAC at WAS 2005, Bali. Made arrangements for John Cooksey to visit Perth in January 2006. ACWA with the Perth Convention Bureau have developed a budget, Project & Budget schedule for event from 2006 to 2012, plus sponsorship program for the event.

Industry Promotion

Coordinate, setup and man the ACWA, WAMPA and DoF Stand for Mussel Fest

Industry Promotion

Coordinate, setup and implement a new industry display for WA Onshow exhibition.

Industry Promotion

Provide regular media releases and interviews.

Industry Promotion Human Capital

Assist DoF develop a industry events plan Promote Brussels Food Expo

Invited Federal & State Minister’s to WAS 2005, Bali. Achieved Over 600 people visited the booth Achieved Over 1600 people visited the booth, and at peak time 500 people an hour past the booth. On going Five releases and five radio interviews provided Completed Achieved.

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17th ACWA Annual Report 2004-2005

Aquaculture for Profit Project

Strategy

Status

Representation Implementation Strategy Industry Development, Investment and Marketing Solutions project.

See page 14 of the Annual Report Set up the project Steering Committee and provided it with executive support.

On-going Achieved

Set up Industry Reference Group. Achieved Coordinate industry comments for the draft and final reports. Achieved Coordinate Regional Development Commission Involvement.

Achieved

Circulate final report to the Minister, ADC, RDC and industry, local parliament members.

Achieved

Undertake contract management and reconciliation report, total worth $55,000 to be delivered by December 2004.

Minister Deregulation of Aquaculture Working Group

provision

of

an

industry

Provide comment on the Terms of Reference. Lobby for bipartisan support for the recommendations of the Aquaculture Review.

State Election

Members Programs

Coordinate the representative.

Saving

Decrease business cost to members. Improve membership value

Achieved

Achieved Achieved

Achieved Achieved Refer to election platforms of Labor and the Coalition. Ongoing Developed ACWAcard though membership of Shop rite. This provides members with access to discounts on food, travel, electrical goods and pharmaceuticals.

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17th ACWA Annual Report 2004-2005

Project Commercial Loan Abalone Aquaculture

Strategy for

Obtain Government support for Innovation investment loan for Bremer Bay Abalone Precinct farms.

Status Achieved Lobbied the Minister of Fisheries, Minister for State Development, Premier, Department of Industry and Resources and Department of Fisheries; and the ADC. Prepared on submissions and undertook delegations to various Ministers. Facilitated the securing of $800,000 commercial loan with assistance from WAAAA, ADC, DoF and the Minister.

Off target Spray Drift impacts on Aquaculture, Human and Environmental Health

Host Seminar & workshop on responsible agrichemical use Obtain Government to set a drafting of priority for Bio-security and Agriculture Management Bill to close loop holes in the legislation. Obtain Government to review administration and investigation of adverse impacts.

Facilitated the payment of the Loan with Bayside and Minister of Fisheries. Achieved

Achieved

Achieved

Provide guideline to industry to manage risk Secure $8000 event sponsorship

Achieved

Draft template neighbour agreement. Achieved Draft a report and circulate to participant and members of parliament.

Achieved

Conduct post-workshop seminar survey Achieved

Achieved

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17th ACWA Annual Report 2004-2005

Project Training

Industry Collaboration

Strategy

Status

Provide input on industry training needs to the following committees:

Provided a submission to Agrifood skills council.

•

Agri-Food Skills Council

•

Challenger TAFE Maritime Industry Training Advisory Group

•

Curtin University Aquaculture review committee.

• WAFIC OHS & training sub-committee Assist industry to develop cooperative marketing arrangements and generically brand product where appropriate.

Attended all meetings of these groups.

Ongoing Developed a proposal for strategic branding of AMWING pearls. Presented this to the ADC. The ADC did not support the proposal. Facilitated the marron industry development planning project with SWDC and the ADC.

Department of Fisheries ADO exit strategy

Prepare a business plan for Small Scale industry education and development.

Achieved.

Policy and Legislation

Key issues advocated :

On going.

1. Aquaculture Leases 2. Risk based environmental reporting on licence conditions 3. Aquaculture long term Licences 4. DPI planning Bulletin for land based Aquaculture. 5. Exemption Application fees for Aquaculture Broodstock 6. Industry Comment on Aquaculture & pearling applications 7. Cockburn Mussel Leases 8. Albany Port Mussel Leases 9. Aquaculture Licence Conditions 10. Live Sand Rock & Coral Policy 11. Food Safety Standards 12. State Marine Planning 13. Natural Resource Management Groups, Strategic and Investment Plans. Need for marine reference groups. 14. Advocacy for specific ACWA members.

See page 14 of the Annual Report

See Appendix 1: for a complete list of submissions.

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17th ACWA Annual Report 2004-2005

Project

Strategy

Aquaculture Development Council (MAC)

Status Achieved

Represent industry at the ADC Provide a background paper to EO of the ADC detailing industry issues affecting the development of Aquaculture industry in WA.

Achieved Provide a presentation and paper on ACWA and the Strategic Allocation of the ADC resources. Achieved Provide a paper on Aquaculture Industry’s position on the strategic allocation of the remaining 20% of its budget. Participate in ADC abalone development planning day.

industry

Achieved

Aquaculture for Tomorrow Project Abalone EMS Environmental Code Practice.

Animal Welfare

Environmental Management Systems

Strategy & of

Status

Contract manage the consultant.

Achieved

Coordinate industry comment & feedback. Assist the DoF develop an Animal Welfare policy.

Explore opportunities for WA based industries to participate in ESD case studies.

Develop training businesses.

initiatives

in

EMS

for

Achieved On going Provided comment on the National Aquaculture Council revision of the animal welfare code of practice. Ongoing Facilitated two (2) companies to enrolled in the National Aquaculture Council EMS case studies. In progress

Attended NAC EMS workshop implementing EMS programs throughout industry.

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17th ACWA Annual Report 2004-2005

Project

Strategy

Status

Develop food safety plans relevant to industry sectors as required by the New Food Regulations developed by ANZFA.

Food Safety

In progress With SQMI program developed a training program that will combine OHS, EMS and Food safety into a two day training program. This will be implemented over the next 24 months.

Corporate Services Project Project Strategic and Business Plans

Strategy Strategy Implement Minister Recommendation No. 6 review ACWA operations with due consideration to Exhibit 2 of the Lendich report.

Status Status Achieved New business plan has developed for 2005-2008.

been

Reviewed after the operational plan of the ADC was determined in March 2005 to ensure no overlap. Develop new ACWA constitution and discussion paper on rationale for the changes. The changes will enable ACWA to broaden it member base.

Peak Body Funding – Levy

Develop a discussion paper on new member’s subscription rates, including the new proposed classes of members. Prepare levy discussion paper for release at the 2004/05 Annual General Meeting. The paper will need to address constitutional and business model changes. Seek legal advice from DoF and SSO on the levy model. Develop a discussion paper on electorates for ACWA board positions. Seek the new Minister views on levy.

Achieved

Achieved in November 2004. Advice received at the end of March 2005. Achieved

Achieved

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17th ACWA Annual Report 2004-2005

Achieved

Achieved

Assoc. Secretariat

Provide WAMPA, WASQAP, YPA, AMWING & WAAAA with secretariat support

Finance, Database and Office management, EO support Advocacy for Co-funding agreement between industry and the Minister.

On going. Obtain a new co-funding agreement with the Minister of Fisheries to maintain an independent, effective and representative peak bodies that can be relied upon to represent the substantive views of a wide range of constituents.

Achieved Achieved.

On-going Secure a commitment for 2004/05 Progressed the levy implementation program. Entered into negotiation over future DBIF arrangements.

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17th ACWA Annual Report 2004-2005

Chairman’s Report At the risk of being accused of plagiarism I would like to remind you of some comments from last years Chairman’s report. “Global factors are placing pressure on market prices in many sectors and operational issues such as low rainfall, higher fuel prices and transport costs, etc” Some things have not changed; it has been a tough year in aquaculture from a WA perspective, labour shortages, ever increasing fuel and material costs, seemingly onerous monitoring and regulation costs, consistently higher environmental hoops to jump through, systemic tardiness within government, cheap imports and the ongoing battle to gain public opinion and investment funds. And that is just at a local level, it does not take into account international pressures. The usual villains of cheap labour and/or subsidised producers, over supply, lower environmental standards, the impact of higher energy demands from China, unfavourable exchange rates all make their impact on the ability of aquaculture producers to function as a viable entity. No matter what our Prime Minister believes, the level playing field is not something that exists in real terms. However, whilst we are unable to do a lot about many of the international issues - except to attempt to take advantage of them, ACWA has been able been able to influence many of the local issues facing aquaculturists in WA. We consider that 2005 has been a year of consolidation and laying of foundations after the release of the Lendich & Ciffolili Reports in 2004. ACWA will continue to push for the implementation and bipartisan support of the recommendations throughout 2006 and beyond. Over the past 12 months ACWA has been actively pursuing a number of issues which have directly impacted on our members and which we believe have resulted in positive outcomes through ACWA’s involvement. ACWA was instrumental in ensuring the drafting of the Biosecurity and Agriculture Management (BAM) Bill which will see the use of pesticide in WA brought into the 21st century. ACWA’s Getting the Drift seminar & workshop was also catalytic in bringing about the Pesticide Advisory Committee’s review of legislation and adverse impacts management. This will have clear benefits to all aquaculturists involved with marron, yabbies and inland fisheries. For our efforts ACWA is also sitting on the Overarching Reference Group that is overseeing the strategic development of the BAM Bill, as such are in the best position to ensure industry’s interests are protected Long term leases or the lack of them have been a constant hindrance to aquaculture ventures and their development, especially our mussel farmers. ACWA has worked with WAMPA, the ADC and DoF to deliver a commitment from the Fremantle Port Authority to draft a long term head lease and sub-lease agreement for areas in Cockburn Sound. It has also been over 550 days since it became feasible for aquaculture leases to be issued in coastal waters – we now have a commitment from DoF for this to happen by December 2005. ACWA has also commenced negotiations on behalf of the GSAA with the Albany Port Authority to extend its leases from 5 to 21 years to ensure parity across the State. Gaining access to sites is often a battle of hearts and minds, despite being only a small user of resources. As highlighted at the last years AGM, the Natural Resource Management (NRM) process is the largest, government funded, community based social engineering program. The NRM groups are extremely well resourced and will play a key role in formulating community views on the industry. Over the past 12 months ACWA’s has ensured that all the NRM groups have implemented marine reference groups that include aquaculture representatives. This will enable us to get our side of the story out into the community. Through groups such as SCRIPT (South Coast Regional Initiative Planning Team) aquaculture has a presence and voice on issues that can impact on aquaculturists in southern WA. ACWA has also lobbied successfully for representation on the State Marine Planning Reference Group. This group will be part of the process of setting up a marine planning policy for the State.

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17th ACWA Annual Report 2004-2005

In 2005/06 will see the ten-year-old Fish Resources Management Act (FRMA) receive a much needed overhaul. This will take shape as an amendment bill and possibly a Parliamentary Committee. ACWA will ensure that all the elements of the Ciffolilli Review are included. Communication is always critical. ACWA has redeveloped its website to enable it become a primary point of focus for the dissemination of information to our members and the public. We expect the current redevelopment of the site to lift our ability to service the industry to even higher levels with the use of e-mail, fax and SMS gateways. Given the funding uncertainty, due to the shrinking DBIF as a result of lower Fisheries GVP and increasing competing strategic uses of the fund, ACWA needs to broaden its member base to maintain and grow its members services. This was the basis for the proposed constitutional and subscription fee schedule changes that will be considered at this year’s AGM. To assist ACWA to grow its membership drive we have sought ways of increasing the direct benefits to ACWA members. These include discounted subscriptions to the Austasia Aquaculture Magazine, Fish Farm International and Englehart Agri-business Consulting. Members will also be eligible for the ACWA Shoprite discount card. Another goal for ACWA is to foster its industry leaders to provide relevant skills to nurture the volunteer base within the ranks of the sector associations. ACWA has gained funding for an aquaculture leadership program that will take place in early 2006. So any future leaders out there please contact Dan for details. In addition, over this year, ACWA has met its targets towards a poll on an industry levy. ACWA published and circulated for comment its business plan and levy discussion paper. Delays on advice of their content from the State Solicitor’s office and the new Minister meant that the levy poll was not conducted in May 2005 as expected. ACWA is still awaiting advice from the new Minister of Fisheries on his position on the need for an industry levy. The Dept of Fisheries WA has a new Minister after the last election in the form of The Hon Jon Ford MLC, Minister for Fisheries; Kimberley; Pilbara and Gascoyne. The Minister is bullish about aquaculture and its role in regional and seafood supply development. One of the first moves by the Minister was to form an Aquaculture Working Group, headed by Mick Murray MLA and supported by Steve Nel and Peter Millington. Its purpose is to look at bureaucratic issues surrounding aquaculture and subsequently look at ways in which they can be reduced. Prior to the State election, ACWA worked tirelessly to ensure the Department of Fisheries implemented the new board of the Aquaculture Development Council (ADC), so as to not risk a six month delay following the election. This has seen one of the Review's primary recommendations carried out. The new ADC will be working with ACWA to implement the findings of the WA Industry Development Investment Attraction and Strategic Marketing Plan. This excellent work was completed by Russell Barnett, Australian Venture Consultants and Jacqui Porter, BrainCells. A special thanks must be given to the steering and industry reference group whose efforts ensured the depth and focus of the plan - a plan which has already guided the strategic allocation of resources in both Government, the ADC and ACWA. The outlook for aquaculture in WA, I believe is one of guarded optimism. The fundamental framework for a vibrant, profitable and sustainable industry is being put in place, but there is no place for complacency. In the last 12 months we have seen successes such as the launch of Marine Produce Australia, producers of Black Tiger Prawns and Saltwater Barramundi, commercialisation of the marron pedigree and the first commercial harvest of farm grown abalone by Bayside Abalone in Bremer Bay. The goal now is to sustain and grow these developments. We are not inherently better at this than anybody else in the world and indeed many investors see little reason to invest here, when they can achieve far more in the short term in developing countries with cheap labour, cheap land and few controls. I believe that this is a mistake on their part. Aquaculture will only succeed in the long term where it is seen as a sustainable and productive industry, which is supported by a development and regulatory framework laying out the roles of industry,

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17th ACWA Annual Report 2004-2005

government and community. This is something we are on the way to achieving in WA, but it is not something that we can do by ourselves. Where there are expectations of us that far exceed that of our competitors and even that of the communities we live in, there has to be more government support, both in terms of services and financial assistance. For example many testing regimes also benefit our local communities and these costs should be shared. Governments these days are looking to hive off services they previously offered as a community service. At the same time as they place ever more onerous monitoring & testing regimes on our businesses, they are allowing more & more imports of dubious origin into the country to compete against our own products, with few apparent controls in place. Just another example of the “level” playing field that we have to deal with. Also the communities that we live within must be made to understand that aquaculture can be both environmentally and economically sustainable and given the chance, be a valuable member of their community. Aquaculture has the potential to create jobs in regional areas, improve marine environments, provide sustainable production, restore degraded marine populations and be the ‘canary’ of our marine and freshwater environments. The misinformed must not be allowed to control the agenda. For example, a relatively small group using guerilla tactics to push their point of view has hijacked the issues surrounding the proposed tuna farm in Esperance. It is up to proponents and organisations like ACWA to present a united face and reasoned argument based on provable facts to counter these claims and show that aquaculture can be and is an acceptable member of the community. Finally, I would like to acknowledge the efforts of people who without their knowledge and contributions ACWA would be unable to retain and expand its role in servicing the needs of the aquaculture industry in WA. Firstly I’d like to thank my fellow board members who keep us all honest and who have kept ACWA alive over many years and through many challenges. Special thanks go to Murray Konarik whose commitment and expertise gave the board that extra depth that is so often required by organisations such as ours. Unfortunately his expertise is also required elsewhere and Murray has to leave us. ACWA has been fortunate to co-opt Stephen Hood who also works for MG Kailis and who has vast experience through his industry involvement and through his role on the Ministerial Advisory Council the ADC. Stephen will be a valuable addition to the board. So we welcome Stephen onboard. After years of valuable service, due to ACWA funding constraints ACWA has had to discontinue Val Sheahan’s contract. This is a direct result of ACWA’s need to restructure its human resources. Val has been a key team member and assisted ACWA for over a decade to achieve its goals. Val will be truly missed although having taken up a position with WAFIC we do not lose her presence entirely. Our Volunteers-Carolyn Jenour and Kate Crass whom have been invaluable to ACWA in our time of need. We wish both Carolyn & Kate well in their choice of careers. And last, but certainly not least, our thanks go to our Executive Officer, Dan Machin. Dan had some fairly large shoes to fill, but I wouldn’t accuse Dan of having big feet as he is proving to be very nimble when it comes to dealing with issues that confront industry. I believe Dan’s depth of knowledge in the workings of government, his own hands on experience in aquaculture and his unwaveringly positive outlook on life has raised the profile of ACWA to another level. ACWA’s ability to work with the government, community, and industry and to service the needs of its members is a key component of Dan’s work and I believe he has carried this out admirably. I am sure I speak for the board as well, that we look forward to working with Dan over the next 12 months. They will be interesting times.

Steve Parsons Chairman 21 October 2005

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17th ACWA Annual Report 2004-2005

Directors Report Your directors present their report on the Aquaculture Council of Western Australia Inc. for the financial year ended 30 June 2005.

Directors The following people were Directors of ACWA during the financial year and up to the date of this report: Chair

Ms Bronwyn Harries

Director

Mr Murray Konarik

Vice Chair

Mr. Rick Scoones

Director

Dr. Bruce Phillips

Director

Mr. Glenn Dibbin

Director

Mr Steve Parsons

Director

Mr. Dan Sampey

Director

Mr Shane McLinden

Director

Mr Greg Jenkins

REVIEW OF OPERATIONS Overview In the year to June 30 2005, income and expenses was $193,797.62 and $183,042.93 respectively. . Of the income $8045.45 was attributable to member’s subscriptions and $5250 from secretariat services purchased by four sectors associations (AMWING, YPA, WAAAA and WAMPA). The remaining $180,502.17 came from Getting the Drift Seminar, and various projects undertaken and managed by ACWA totaling $55,502.17 and a $125,000 Minister of Fisheries through the Development and Better Interest fund peak industry body. Consequently, the ACWA has finished the year with a net income $10,754.69, this sum does not include $37,855.00 of deferred income for projects that will be achieved in 2005/06 (Appendix 1). Despite this positive position, ACWA has challenging outlook, with the reduction of DBI peak industry funding to $80,000 for 2005/06, with the Council needing to raise $45,500 p.a of income to provide full service program to members over 2005/06 and beyond.

Principal Activities The principal activities during the financial year ended 30 June 2005 comprised of the representation and promotion of the Western Australian Aquaculture Industry.

Results The net profit/loss of $10,754.69

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17th ACWA Annual Report 2004-2005

ACWA’S Business Programs Aquaculture for Profit Progress was made during the year towards our goal of creating a world best practice environment for aquaculture industry development in Western Australia. The focus of year was to ensure the fundamentals of tenure (leases and long term licences), site access and spray drift were delivered by government. The journey of course is a perpetual one and much still needs to be achieved. Aquaculture Development and Legislative Review ACWA worked tirelessly to ensure the implementation of Aquaculture review recommendations during 2004/05. Given the 4 year time frame to complete the review, there is no time for contingency, as such ACWA was concerned about the outcome of the State election and that it could risk the progress of the reform agenda. It was on this basis, ACWA worked to ensure that there was bipartisan support for the Review’s recommendations. In addition, ACWA lobbied to make certain that the new ADC was in place prior to the State election so that the reform agenda was able to be progressed. This included facilitate industry nominations for the ADC, and ensuring the DoF provided the Cabinet minute for the final meeting prior to calling of the Election. WA Aquaculture Implementation Strategy (5 year Plan) Industry Development, Investment and marketing Solutions The Western Australian aquaculture industry needed a clear strategy and architecture in terms of both industry development and strategic marketing. To date, this has been a major deterrent to securing the $160-200 million of private investment needed to bring the industry to fruition and to meet its projected targets. Western Australian aquaculture projects compete for investment capital with aquaculture projects in other parts of Australia and indeed for projects in other sectors. Without the implementation of a coherent and achievable industry development and strategic marketing plan, Western Australian aquaculture projects will continue to lose investment capital to Eastern States counterparts and other industries, leaving it to languish in its current state of uncertainty and questionable investment potential. The completion of stage 1 of Investment Attraction and marketing Implementation strategy have been an integral part in formulating the industry’s and government focus and define critical roles and responsibilities in bringing the WA aquaculture industry to fruition. ACWA would like to that all the industry reference group and Steering Group members in their efforts to bring this project to completion. Aquaculture Leases for Coastal Waters Regrettably another year has past and aquaculture leases application have not been made available to the aquaculture industry. To date industry has waited 1 year and 188 days since gazettal of the FRMA amendments that would enable leases to be issued. Over the past 12 months ACWA has consistently lobbied the Minister of Fisheries, the DoF Fisheries Executive Director, and its Aquaculture Program, plus the ADC regarding this industry development priority. The outcome of these efforts is that the DoF has committed to November 2005 the application for leases will be issued. Cockburn Mussel Industry Leases ACWA has been working with WAMPA, the ADC and DoF to gain security of tenure for the lease sites in North and South Kwinana Grain Terminal and Southern Flats is achieved. Over the year we gained a commitment from ADC to contract a lawyer or pay the Fremantle Port Authority to draft the head lease and lease documentation. The DoF also has waived the lease fees until the leases are resolved. This year’s program ACWA has worked with WAMPA to submit an application for Southern Flats extension.

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17th ACWA Annual Report 2004-2005

Long Term Licences Despite government’s support and agreement on long term licences as a key area of importance in investment attraction, the ACWA has not been able to get Department of Fisheries to commit to a timeline. This is despite a formal recommendation on the matter requested by ACWA through the ADC. Natural Resource Management (NRM) Groups The NRM program is the largest coastal and marine community based project in Australia. The program has the potential to significantly shape opinions and views of many people in regional communities. In fact, the South Coast Regional Initiative Planning Team (SCRIPT) showed that it has the ability to significantly impact the communities understanding of aquaculture. Such actions run the risk of communities, based on biased information, deciding not to support the allocation of sites for aquaculture purposes. This access is critical to the emerging WA aquaculture industry. This risk is real, especially when the groups are well resourced and ideologically driven against any economic development. It is on this basis the aquaculture industry seeks your influence to ensure official checks and balances are placed in the structures and the process. Through the year ACWA learned to navigate its way through the NRM program. In the first six months, ACWA lobbied to ensure that NRM process set up marine reference groups around the State, which culminated with its invitation to Marine facilitators planning workshop. In addition, ACWA provided submissions to all 6 NRM groups Strategic Investment Plans and discussion papers to ensure that the industry was presented in an accurate light and that specific strategic projects were identified. ACWA also requested it be represented on the NRM Joint Steering Committee as an industry representative. State Marine Planning Policy ACWA has successfully lobbied to ensure that it’s represented on the State marine Planning Key Stakeholder reference Group. Spray Drift On March 22 & 23 ACWA hosted the “Getting the Drift” seminar and workshop to assit is in its lobbying and awareness-raising efforts. The Getting the Drift seminar was a critical step in creating focus on this key issue to the aquaculture industry, but, more importantly, it demonstrated to government that both industry and the public wanted changes in how pesticide use was legislated and managed in WA. Legislative Changes In late June ACWA was advised by Department of Agriculture that the drafting of the Biosecurity and Agriculture Management Bill is underway. This advice made good Minister Kim Chance’s long standing promise that the Biosecurity and Agriculture management Bill was a legislative priority. The Bill now has had its drafting rating moved from “BB”, where it has been for 7 years, to “AA”, the highest priority. The Minister’s goal is to have the Bill ready for its first reading in parliament in September 2005. The Bill will provide the head powers for a series of yet-to-be drafted regulations that should see arrangements such as mandatory sensitive neighbour notification and mandatory training for chemical users implemented. ACWA has been asked to join the Over-arching Reference Group which will work with the State Solicitors’ Office and other industry groups to finalise the Bill and the regulations. As such, ACWA will be in the best position to protect aquaculture’s interests. Policy Changes Given that Western Australia has no inter-departmental adverse impacts investigation protocol, ACWA is pleased to see that following the Getting the Drift seminar Dr Margaret Stevens, chair of the Pesticide Advisory Committee (PAC), decided to implement a review of pesticides policy, legislation and administrative arrangements. The aim of the review is to recommend the best approach to the development of a modern, consolidated legislative basis for the control of the use of pesticides, and to write a discussion paper setting out the policy and administrative arrangements which will underpin the new legislative framework for the control of the use of pesticides in Western Australia. To ensure that the aquaculture industry’s interests are catered for ACWA has been invited by the Department of Health, to be one of the industry reference group members.

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17th ACWA Annual Report 2004-2005

Interim Measures Whilst the aquaculture industry has been given assurances that the legislation, regulations and the PAC review will be completed and implemented in 12 months ACWA has called for the implementation of fundamental interim arrangements, especially in the areas of awareness-raising and adverse-impacts investigations, as the current arrangements will continue to conspire against the development of vulnerable industries. ACWA has raised this matter with Minister of Fisheries, Hon Jon Ford, Minister for Agriculture, Hon Kim Chance and Minister for the Environment, Dr Judy Edwards. On 30 June ACWA met with Dr Edwards. Minister Edwards was very interested in this issue. She stated she would ensure the matter would be raised at the Ministerial Council on Health, Environment and Industry Sustainability at its meeting on 9 August. ACWA’s provided publication useful tips on steps aquaculturist can use do to better manage the risks on their own property, and Getting the Drift seminar reports. ACWA would like to thank the following people in their assistance, Peter Rutherford (DoAg), Anne-Marie Penna (Conservation Council WA) Rick Scoones, Dr. Brian Jones (DoF), Warren Moore, Dr Mark Gibberd, CURTIN. And the Marron Growers Association, Yabby Producers Association, the Forest Products Commission, Department of Fisheries and Chemcert for their generous sponsorship. Planning Bulletin for land based Aquaculture Regulatory risk posed by local government is considerable Aquaculture ventures, especially in the Southern, Great Southern and Goldfields and Esperance regions. The delays in processing applications places considerable angst and uncertainty for applicants that impacts on investor confidence. To address this ACWA drafted a Planning Bulletin for consideration of the Department for planning and infrastructure. Submissions on Government Policy & Fisheries Management papers, leases, licences, variations and translocation applications ACWA provided a total of 66 letter and submissions over the 2004/05 year, see Appendix 1 for a summary. Key Policy Officer Relations ACWA has maintained relationships and networks with the following Ministerial and Departmental policy officers: The Minister of Fisheries, the Minister of Health, the Minister of the Environment, Minister for Planning and Infrastructure; Department of Premier & Cabinet, Department of Environment, Department of Conservation and Land Management, Department for Planning and Infrastructure; Department of Fisheries (Aquaculture program, community relations, research, legal); Department of Health. Industry Performance Statistics To improve the situation ACWA has been trying to obtain online reporting implemented by the Department to improve the efficiency and effectiveness. This will be pursued as part to the 2005/6 proposed FRMA amendment Bill and Parliamentary inquiry into the FRMA. In 2005/06 the Aquaculture production returns will be able to be lodged quarterly inline with Business Activity Statements (BAS). Environmental Monitoring (EM) and reporting Given the costs of compliance with EMP at the early stage of a project’s development ACWA has been working with DoE and DoF to develop an EMP that is commensurate with the environmental risks of the stages of a project development. In addition, ACWA has been advocating the need for DoE to improve the efficiency and effectiveness by standardising licence conditions, make provision for online records and provide pro-forma EM plans for species sectors. Research Requested the DoF to investigate the actual levels of trace of heavy metal analysis in Calcium nitrate. Broodstock Exemption Fees ACWA successfully lobbied for the reduction of the Exemption application fee from $1250 to $250.

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17th ACWA Annual Report 2004-2005

Marron Pedigree Commercialisation ACWA, with the Marron Growers Association and the DoF developed commercialisation scenarios, which resulted in the proposed EOI process. ACWA agreed to sit on the EOI selection committee, and provided comment DoF selection criteria. Albany Port Authority Commenced negotiations with the Albany Port Authority to extend its leases from 5 to 21 years. Department of Fisheries Aquaculture Development Officer exit strategy ACWA developed, based on industry survey, a business plan for small scale industry development and education program for the next three years. This program will see the development of an industry based extension service. Abrolhos Island Management Advisory Committee (AIMAC) Given the significant presence of aquaculture business on the Abrolhos Islands ACWA commenced advocating for the need for a permanent position for Aquaculture on the AIMAC. The Minister has agreed in principle to this, however, ACWA needs to secure a timeline to complete this position. Representation Positions Held By Directors and Executive of ACWA On Behalf Of The Organisation And Other Associations Board Member

Committee & Working Group

Steve Parsons

Western Australian Representative FRDC Abalone Sub-Program WAAAA Committee South Coast Regional Initiative Planning Team (SCRIPT) Marine Reference Group*

Rick Scoones

ACWA Finance subcommittee* ACWA Industry Promotion subcommittee* WA Fishing Industry Council (WAFIC) Native Title Subcommittee*

Bronwyn Harries

National Aquaculture Council board member* WAFIC board member* WAFIC Research & Development Sub-Committee* ACWA Industry Promotion subcommittee* WAFIC Industry Profile Committee* ACWA Finance subcommittee*

Shane McLinden

Chair - Australian Abalone Association Seafood Enterprises Alliance South Australian Abalone Growers Rep on South Australia Aquaculture Council

Stephen Hood

State Fisheries Research Advisory Board (FRAB) Seafood Quality Management Initiative (SQMI) steering committee FRDC Rock Lobster Post-Harvest Program Chair - Midwest TAFE Marine Industry Advisory Council Curtin Uni Aquaculture Course Review Committee Rock Lobster Industry Advisory Committee R&D Sub-committee Joint Trawl Ministerial Advisory Committee

Glenn Dibbin

Seafood Quality Management Initiative (SQMI) steering committee Australian Shellfish Quality Assurance Advisory Committee WAFIC Representative Cockburn Sound Management Committee Chair - WA Mussel Producers Association

Bruce Phillips

FRDC Rock Lobster Post-Harvest Program FRDC Rock Lobster Enhancement and Aquaculture Sub-Program

Greg Jenkins

State Fisheries Research Advisory Board (FRAB)* Challenger TAFE Centre Industry Advisory Committee on Training ACWA Industry Promotion subcommittee*

Dan Sampey

Secretary of Marron Growers Association Management Committee for the Marron Genetic Research Program 20

17th ACWA Annual Report 2004-2005

Executive Officer

Committee & Working Group

Dan Machin

Fish Resources Management Act Amendment Bill working Group* Marine Protected Area Compensation Working Group* Overarching Reference Group for the Biosecurity & Agriculture Management Bill* Regulation Reference Group for the Biosecurity & Agriculture Management Bill* Challenger TAFE Co-management Training Working Group* Steering Committee of Improve Marron stocks tenders* ACWA Industry Promotion subcommittee* Aquaculture Environmental Monitoring Conditions Working Group* WAFIC Occupational Health and Safety & Training Sub-committee* ACWA Finance subcommittee* CURTIN Univ Aquaculture Course review committee* National FRDC ESD working group* Plantagenet Community Consultative Group* FRDC Marron Project Steering committee* FRDC Aquatic Animal Health FRDC Sub-programme* Vice Chair, Shellfish Industry Council of Australia Challenger TAFE Centre Industry Advisory Committee on Training*

* denotes representation made on behalf of ACWA.

Aquaculture for People Events Mussel Festival 2005 This event was held on Sunday 17 March, 2004. The ACWA and the Western Australian Mussel Producers Association presented and staffed a shared display booth. The key messages were the promotion of the mussel sector, ecological sustainable development and the new mussel code of practice. Getting the Drift – Seminar and Workshop The Getting the Drift seminar brought together a group of nine expert speakers and examined practical measures for agri-chemical users to reduce the risks of spray drift, as well as the current status of research, legislation and regulation, and incident management issues concerning off-target spray drift. The seminar was open to the public, and the resulting 75 participants represented a range of 42 industry and business sectors, government departments and community interest groups. Training Leadership Training ACWA is pleased to announce that the Department of Fisheries has contributed $5000 for ACWA to arrange for leadership training for 10 leaders in WA industry. It is ACWA’s intention to seek another $5000 from Dept. of Local Government from its: Building and empowering sustainable communities fund”. This training will take place in 2005/06.

Promotion & Communication WA Onshow Over 1600 people visited the booth, and at peak time 500 people an hour past the booth. The theme of the booth was Aquaculture the Blue revolution – building sustainable regional Western Australian communities. World Aquaculture 2012 Conferences and Exhibitions 21

17th ACWA Annual Report 2004-2005

EO attended WAS 2005, Bali to arrange the visit of John Cooksey in January 2006. ACWA News ACWA has published on one edition of ACWA news in 2004/05. ACWA website To ensure ACWA is able to improve the efficiency and effectiveness of industry consultation and communication, the board undertook to redevelopment its website over second half of 2004/05. The new site will be launched in October 2005. The aim is to make the site a gateway to information, in particular products and services. The new site will provide online directories to hatcheries, equipment suppliers, consultants, jobs board. In addition, there will be member only area were additional resources and details on ACWA activities and submissions will be posted. Media releases ACWA continues to provide regular with a total of ten (10) media releases and interviews. ADC Industry Issue Papers Provided background papers to all of the Minister Advisory Committee, the Aquaculture Development Council (ADC) meetings.

Aquaculture for Tomorrow Abalone Environmental Code of Practice The ACWA assisted WAAAA in the development of its Environmental Code of Practice along similar lines to that developed for the mussel and black pearl sectors. Animal Welfare DoF has commenced consulting with industry with regard to legislation for fish welfare. The ACWA position was that Codes of Practice need to be voluntary and not enshrined in the legislation. ACWA provided comment to the DoF on its position paper.

Corporate Services The ACWA board has developed a new strategic plan and operational plan for 2005 to 2008. The plan focuses on improving member’s services – through improved communication networks, training and representation. The plan will result in improving ACWA’s ability to move its private to public fund ratio from 1:10 to 1:1. Membership ACWA direct membership represents 272 people involved in the Western Australian Aquaculture Industry. These businesses are responsible for over 90% of the current and prospective aquaculture industry GVP. Aquaculture Sector Associations Marron Growers Association Inc Yabby Producers Association Inc Silver Perch Association Inc Western Australian Mussel Producers Association Inc Great Southern Aquaculture Association Inc Western Australian Abalone Association Inc Marine Fishfarmers Association Inc Kimberley Aboriginal Aquaculture Corporation AMWING Pearl Producers Association

Number Members 137 9 15 7 14 11 8 17 15

of

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17th ACWA Annual Report 2004-2005

Table 1: Memberships numbers of Aquaculture Sector Association members of the Aquaculture Council of Western Australia. Flowing from the need of ACWA to broaden its member base a ACWA has prepared discussion papers on constitutional changes, the new electorate system for board positions, and membership fee schedules. These papers are commended to the members for their consideration at a Special General Meeting. Discount programs The Aquaculture Council of Western Australia as part of its commitment to reduce costs to its members has negotiated the following discounts: • • • •

Shoprite ACWAcard 20% off Fish Farm International. $40 discount on Austasia Aquaculture Magazine $25/h discount on Englehart Consulting, business consultants, specialising in agribusiness.

Database management ACWA has implemented a new SQL based system that holds contact details of industry members, Ministers, Shadow ministers, key policy advisors and departmental staff. Note that the member registry is kept in confidence. Industry Levy ACWA prepared discussion papers on levy business plan and required constitutional changes. Ultimately, to provide the level of service detailed in the business plan ACWA needs to secure $172,000 per annum in base funding. The levy, if supported by all sectors, in its current form allows for $41,075 to be raised. ACWA is seeking a better understanding of the peak industry body funding arrangements for ACWA, under the DBI funding, given the ACWA BDIF contribution will be reduced to $80,000 in 2005/06.

Significant changes in the State of Affairs In the opinion of the directors, there were no significant changes in the state of affairs of ACWA that occurred during the financial year, not otherwise disclosed in this report.

Matters subsequent to the end of the financial year Except as disclosed in the financial report, no other matter or circumstance has arisen since 30 June 2005 that has significantly affected, or may significantly affect: 1. the operations of ACWA in future years 2. the results of those operations in future years, or 3. the state of affairs of the company in future years.

Likely Developments and expected results of operations Further information on likely developments in the operation of the Council and expected results of those operations have not been included in this report because the directors believe it would likely result in unreasonable prejudice to ACWA.

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17th ACWA Annual Report 2004-2005

Meetings of Directors The number of meetings ACWA held during the financial year ended 30 June 2005 and the number of meeting attended by each director are set out below.

Chair Vice Chair Director Director Director Director Director Director Director

Mr Steve Parsons Appointed Mr. Rick Scoones Appointed Mr. Glenn Dibbin Appointed Mr. Dan Sampey Appointed Mr Murray Konarik Appointed Dr. Bruce Phillips Appointed Ms Bronwyn Harries Appointed Mr Shane McLinden Appointed Mr Greg Jenkins

Number of Directors meeting held During the financial Year

Number of Directors meeting attended during the financial Year

10

9

10

5

10

8

10

6 (available for 8)

10

7

10

6

10

9

10

5

10

10

We commend our report to you and look forward to playing a part in pursuing aquaculture industry in Western Australia.

Steve Parsons Chairman On behalf of the Board of Directors of ACWA

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17th ACWA Annual Report 2004-2005

Appendix 1: ACWA Financial Report

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17th ACWA Annual Report 2004-2005

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